American Land and Capital

About American Land and Capital

American Land and Capital is a Lakeville, MN based hard money lender. They offer loans in Minnesota, Wisconsin, North Dakota, South Dakota, Iowa, and Nebraska. They offer builder loans and fix and flip loans. They primarily offer loans for single family, multi family residences, and raw land.

Loan Types Offered: Fix and Flip Loans, New Construction Loans

Property Types Covered: Single Family, Multi Family, Land

Areas Served: MN, WI, ND, SD, IA, NE

Lending Guidelines for American Land and Capital

Below are the general loan guidelines published on the American Land and Capital website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by American Land and Capital.

Loan Example 1

Matthew takes a private money loan from American Land and Capital in order to remodel a property to resale in Minneapolis, MN. The list price of the house is $200,000. Because the lender sets a 65% loan-to-value, Matthew will need to put 35% down and the amount of the loan will be $130,000. The parameters of the loan dictate a 14% note for 12 months. They also stipulate a 4 point origination fee, that will also have to be paid upon closing.

The borrower will have to fund a total of $32,400 upon closing to cover the $70,000 down payment plus the $5,200 origination fee. The monthly interest-only payments will then total $1,517 to American Land and Capital. If Matthew sells the project for $250,000 after 12 months, he would earn a gross profit of $26,600 after deducting the principle amount of $130,000, the cash contributed at the close of $70,000, the origination fee of $5,200, and the aggregate interest payments of $18,200. This gross profit does not include remodeling costs.

Loan Example 2

Dennis is a real estate investor in Minneapolis, MN. He purchases a run-down house for a rehab project and obtains a hard money loan from American Land and Capital with the following paramters:

a) A $260,000 sales price, b) a 70% loan to value (LTV), c) a 12 month term, d) a 10% interest rate, and e) a 4% origination fee.

If Dennis accomplishes his goal of a $364,000 sales price, the numbers of the project will be as follows:

$364,000 sales price
- $182,000 principle on note (70% LTV)
- $78,000 down payment (30% on 70% LTV)
- $7,280 origination points (4% of the $182,000 principle)
- $18,200 interest payments (12 months x 10% interest)
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= $78,520 gross profit (doesn't include taxes or rehab costs)